1. Slide 1
Tobacco Plain Packaging in Australia Dr Anthony Millgate Acting Assistant Secretary Tobacco Control Taskforce Department of Health

2. Outline Implementation of tobacco plain packaging measure Challenges
Slide 2
Outline
Implementation of tobacco plain packaging measure
Challenges
Evidence in support continues to grow
Recent media and claims being made by industry
What the official figures indicate

3. Introduction of Tobacco Plain Packaging
Slide 3
Introduction of Tobacco Plain Packaging
In April 2008, the Council of Australian Governments (COAG) committed to:
Reducing the national daily smoking rate to 10% by 2018;
Halving the smoking rate among Aboriginal and Torres Strait Islander people from 47%.
In 2009, the National Preventative Health Taskforce was established to examine evidence on tobacco, alcohol and obesity.

4. Introduction of Tobacco Plain Packaging (cont’d)
Extensive evidence to June 2009 in support of tobacco plain packaging.
Set out in reports of the National Preventative Health Taskforce.
29 April 2010, in response to the recommendations of the National Preventative Health Taskforce, the Australian Government announced the Anti-smoking Action Package.
Since 2009 the evidence base has continued to grow.
Additional studies referenced in the April 2011 consultation paper on the draft tobacco plain packaging legislation.
Review of the evidence by Cancer Council Victoria in May 2011 cited 24 studies in the peer-reviewed literature.

5. Anti-Smoking Action Package
Slide 4
Anti-Smoking Action Package
Announced by Australian Government in April 2010, and included:
world first tobacco plain packaging legislation;
updated and expanded graphic health warnings;
25% increase in tobacco excise;
substantial investment in anti-smoking social marketing campaigns;
legislation to restrict internet advertising of tobacco products in Australia;
extended listing of nicotine replacement therapies and other smoking cessation supports on Pharmaceutical Benefits Scheme; and
record investments (about $100 million) in support for Aboriginal and Torres Strait Islander communities to reduce smoking rates.

6. Established tobacco regime in Australia
Slide 5
Established tobacco regime in Australia
These measures come on top of an established tobacco control regime.
Minimum age restrictions on the purchase and supply of tobacco products;
comprehensive bans on tobacco advertising and promotion;
retail display bans;
bans on smoking in a range of indoor and outdoor public spaces, and increasingly outdoor places where children may be exposed to environmental tobacco smoke;
extensive and continuing public education campaigns;
PBS subsidies for smoking cessation supports; and
Quitlines and other smoking cessation support services in each State and Territory.

7. Slide 6
More Recent Measures
More recently, other significant measures have been introduced:
reduction in the duty free allowance for tobacco products from 250 cigarettes or 250g of cigars or tobacco products, to 50 cigarettes or 50g of cigars or tobacco products per person, from 1 September 2012;
stronger penalties for tobacco smuggling offences;
1 December 2013 – 12.5% excise increase with further three 12.5% increases on 1 September 2014, 2015, 2016; and
National Tobacco Strategy endorsed by the federal, state and territory health ministers: available at

8. Tobacco Plain Packaging Commencement
Slide 7
Tobacco Plain Packaging Commencement
All products manufactured or packaged in Australia for domestic consumption were required to be in plain packaging.
All tobacco products were required to be sold in plain packaging with new and expanded graphic health warnings.

9. Tobacco Plain Packaging Objectives
Slide 8
Tobacco Plain Packaging Objectives
Reduce the attractiveness and appeal of tobacco products;
increase the noticeability and effectiveness of health warnings;
reduce the ability of packaging to mislead consumers about harmful effects; and
through the achievement of these aims in the long term, as part of a comprehensive suite of tobacco control measures, contribute to efforts to reduce smoking rates.

10. Development of Tobacco Plain Packaging Legislation
Slide 9
Development of Tobacco Plain Packaging Legislation
Close collaboration between Government agencies
Formal public consultation processes and targeted consultation with retailers and tobacco industry
Consultation with the industry was done in accordance with the requirements of FCTC Article 5.3
Two Parliamentary Inquiries (House of Representatives and Senate) into the draft legislation in 2011
Some changes made to draft legislation following consultation processes

11. Tobacco plain packaging
Slide 10

12. Tobacco plain packaging design
Slide 11

13. Slide 12

14. Plain Packaging of Non-Cigarette Tobacco Products
Loose leaf tobacco pouch
Cigarillo tin
Cigar tube
Slide 13

15. Updated and Expanded Graphic Health Warnings
Slide 14
Updated and Expanded Graphic Health Warnings
Graphic health warnings on tobacco products updated and expanded in Competition and Consumer (Tobacco) Information Standard 2011.
Took full effect from 1 December 2012.
Size of graphic health warnings increased to 75% of front of pack for cigarettes and cartons, up from 30%, with 90% warnings for the back of packs retained
Size of graphic health warnings for most other smoked tobacco products increased to 75% of both front and back of the pack
Rotated in 2 sets of 7 warnings every 12 months.

16. Tobacco industry tactics/disputes
Slide 15
Tobacco industry tactics/disputes
Tobacco industry undertook a number of actions to oppose tobacco plain packaging.
Large scale campaigns against the measure
TV, radio and print advertising, social media, cards inserted into cigarette packs, and thousands of postcards sent to MPs
Large numbers of FOI requests for documents relating to tobacco control, plain packaging and graphic health warnings
Alliance of Australian Retailers - funded by tobacco companies specifically to lobby against tobacco plain packaging during 2010 Federal election.

17. Tobacco Plain Packaging Compliance and Enforcement
Slide 16
Tobacco Plain Packaging Compliance and Enforcement
The Department of Health has responsibility for enforcing the tobacco plain packaging legislation.
Maximum penalty is AUD$340,000 for an individual and AUD$1.7 million for a company.
Inspections require a reasonable suspicion that there has been a breach of the Tobacco Plain Packaging Act 2011.
Reliant on complaints and information provided to the Department.
Enforcement Committee provides direction and considers outcomes in relation to complaints.
National Measurement Institute (NMI) undertakes educational, compliance and enforcement activities on Department’s behalf.

18. Communications activities
Slide 17
Communications activities
Extensive communications activities occurred in late 2012.
Information Kit sent to retailers and other suppliers.
Newspaper and online advertising.
Reminder letter sent to retailers in November 2012.
Letters to importers and distributors of non-standard tobacco products in early 2013.
Letter and FAQ document on shisha/molasses tobacco sent to suppliers in March 2014.

19. Compliance and Enforcement Statistics
Slide 18
Compliance and Enforcement Statistics
Relatively small number of complaints received to date.
A combined total of over 3,400 educational visits to tobacco suppliers were undertaken in and
A proactive way to educate suppliers on their obligations under the legislation.

20. Slide 19
Claims made by the tobacco industry in opposing implementation of tobacco plain packaging
The tobacco industry claimed that the implementation of tobacco plain packaging would:
increase retail transaction times for tobacco product purchases
severely impact retailers and small business
increase illicit tobacco
have no impact on smoking prevalence

21. Industry Commissioned Reports and Research on Tobacco Plain Packaging
Slide 20
Industry Commissioned Reports and Research on Tobacco Plain Packaging
Tobacco industry continues to commission flawed reports and research. Key examples include:
London Economics report, commissioned by Philip Morris International
University of Zurich reports, also funded by Philip Morris International
KPMG report on illicit trade in Australia

22. Recent Research on Tobacco Plain Packaging
Slide 21
Recent Research on Tobacco Plain Packaging
Recent studies published in 2013 and 2014 indicate that the measure is having an effect:
Plain packs with larger health warnings increased smokers’ urgency to quit and lowered appeal of smoking
Decline in active smoking rates and personal pack display (packs clearly visible on tables) among patrons in outdoor venues, post-implementation
a 78% increase in the number of calls to the Quitline in two jurisdictions, associated with the introduction of tobacco plain packaging

23. Recent Media Reports on Industry Claims
Slide 22
Recent Media Reports on Industry Claims
Recent media has claimed:
that tobacco industry sales data shows that since plain packaging was introduced, tobacco sales volumes increased by 0.3%
that tobacco industry sales data show that from 2008 to 2012, smoking incidence was declining at an average rate of 3.3% per year and that since plain packaging was introduced, that decline rate slowed to 1.4%.

24. Reports Contradicted by Official Figures
Slide 23
Reports Contradicted by Official Figures
ABS data shows total consumption of tobacco and cigarettes in the March quarter 2014 is the lowest ever recorded.
Tobacco clearances (including excise and customs duty) fell by 3.4% in 2013 relative to 2012 when tobacco plain packaging was introduced.
Latest data from 2013 NDSHS: smoking prevalence among those aged 14+ has fallen from 15.1% in 2010 to 12.8% in 2013.
These results highlight importance of our comprehensive tobacco control measures.

25. Legal Challenges to Tobacco Plain Packaging
Slide 24
Legal Challenges to Tobacco Plain Packaging
Constitutional challenges in the High Court of Australia – legislation found not to breach Constitution
Decision handed down in August 2012
Current international legal challenges:
Investor-State arbitration brought by Philip Morris Asia under the Bilateral Investment Treaty between Australia and Hong Kong; and
World Trade Organization disputes.

26. Slide 25
Questions